Break-Even Sales Under Present and Proposed Conditions

Portmann Company, operating at full capacity, sold 1,000,000 units at a price of 187 per unit during the current year. Its income statement is as follows:

Sales $187,000,000

Cost of goods sold (98,000,000)

Gross profit $89,000,000

Expenses:

Selling expenses $15,000,000

Administrative expenses 14,300,000

Total expenses (29,300,000)

Operating income $59,700,000

The division of cost between variable and fixed is as follows:

Variable Fixed

Cost of goods sold 70% 30%

Selling expenses 75% 25%

Administrative expenses 50% 50%

Determine the total variable costs and the total fixed costs for the current year.